HSBC reported a near doubling in first quarter earnings yesterday, demonstrating the benefits of a three-year restructuring, cost cuts and a big drop in bad debt charges.

Europe's largest bank has moved faster and more aggressively than many of its peers to reduce costs in the wake of the financial crisis, shedding 38,000 jobs and closing or selling more than 50 businesses.

The bank reported a pretax profit of US$8.4 billion, up from US$4.3 billion a year ago and above the average forecast of US$8.1 billion from analysts polled by the company.

A US$1.1 billion gain from disposals aided earnings as did a halving of bad debt provisions to US$1.2 billion, helped by the winding down of some US loan books.

Costs in the first quarter fell 10 percent from a year ago. Costs are now just over 53 percent of income, close to the bank's target of below 52 percent by the year-end.

Across Europe, smaller rivals are also cutting back. French banks Societe Generale and Credit Agricole yesterday committed to keep cutting costs to help offset a weak domestic economy.

HSBC has compensated for weakness in Europe with strong growth in Asia.